Center for Economic & Fiscal Policy

 

• Over the past 20 years, Delaware’s per capita income has gone from the highest in the nation to below the national average.

 

• According to the Delaware Department of Labor, employment is projected to grow at only 0.5% over the next decade, thereby trailing most of the nation.

 

• Since 2009, Delaware has had five recessions compared to one in the rest of the country.

 

• Including the variable Gross Receipts Tax, small business owners in Delaware often pay the highest personal income tax rates in America. 

 

In partnership with other like-minded Delaware organizations, the primary goals of this Center are to develop bi-partisan strategies and alternative policy options that will bring transparency, regulatory reform, and improved effectiveness to the tens of billions of dollars spent by the State every year.

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Delaware and High-Tech Innovation | 12/15/2019

In its recent report on “Growth Centers” the Brooking Institute declares that “the future of America’s economy lies in its high-tech innovation sector.”   Brookings identifies a cohort of 13 innovation industries where R&D expenditures exceed $20,000 per ...

The View from Pew | 12/5/2019

The Pew Center Trust has recently updated its information website on the fiscal health of states. It confirms much of what is known about the State of Delaware’s finances.   On the positive side, as of 2018 Delaware state government could run 20.5 days on rainy day funds if tax reve...

Recent economic news for Delaware | 11/11/2019

The Fraser Institute has just released its 2018 economic freedom rankings for the states in the U.S. and Delaware remains ranked a low 39th. Delaware ranked as high as 10th among the states in economic freedom in 2002 and fell precipitously in the rankings following the 2007-08 recession.   ...

A Rising Tide Lifts All Ships | 10/31/2019

In a recent opinion piece Ted Kaufman, relying upon data from the liberal Economic Policy Institute, argued that weak wages require policies that would restore unions and raise the minimum wage. I would favor the policies that encourage economic growth.   The Obama-Biden approach to macro...

Delaware Public Education: A Proposal | 10/24/2019

CRI believes that the first substantive step in approaching any public policy issue is gathering unbiased data. Data, while never perfect, moves away from rhetoric and anecdotes. Data tells us where we are so that we can measure future success or failure.   The Delaware Department of Publ...

Moving Delaware Out of the Economic Doldrums | 12/30/2018

Executive Summary   Why do we care about a growing economy?  The basic answer is faster growing economies lead to higher incomes making everyone a little richer, especially reducing poverty rates and unemployment rates.  The Delaware economy actually fell a half percent a year...

Delaware Lags in Fiscal Health | 12/5/2018

The 2018 ranking of states by fiscal condition has been issued by the Mercatus Center. The analysis is based upon FY16 financial reports.   Delaware ranks 44th among the states for fiscal health.   Delaware has between 1.34 and 1.98 times the cash needed to cover short-term obl...

Gross receipts tax will add to economic woes | 11/28/2018

This article was originally published at delawareonline.com on May 29 in The News Journal on May 30   The recent DEFAC Advisory Council on Revenue recommends an increase in the state's Gross Receipts Tax rate. This is a gross mistake for three reasons.   First, if you tax s...

Might General Electric Move to Delaware? | 11/28/2018

General Electric may be looking for a new home for its corporate headquarters in response to a whopping $150 million Connecticut state tax increase.  The company already moved once as a tax refugee from New York City to its current Fairfield, Connecticut location.  Delaware could get on th...

Is Amazon amazing? | 11/28/2018

Amazon recently announced the addition of 500 jobs at its Fulfillment (distribution) Center in Middletown, bringing the total of year round jobs at the site to 2,500. Is this commitment amazing?   On a macro level it is not. Over the past five years Amazon has been one of the fast growing...